Material Facts in Victoria: A Practical Risk Management Strategy for Agents

Rex Afrasiabi | Principal - New Chapter Legal

In Victoria’s current regulatory environment, few areas create more risk for real estate agents than material facts.

We all know the obligation exists. But knowing the rule and operationalising it are two very different things.

Too often, disclosure is treated as a quick conversation during the listing presentation:

“Is there anything we should know about the property?”

The problem with that approach is obvious. It is vague, it lacks structure, and it assumes the vendor understands what qualifies as a material fact under Victorian law.

In many cases, vendors do not intentionally withhold information. They simply do not appreciate that certain matters may influence a purchaser’s decision.

That is where process becomes critical.

Move from General Questions to Structured Prompts

Instead of relying on broad, open-ended questions, agents should incorporate structured prompts into their listing process.

For example:

Has the property ever been affected by flooding, fire or significant structural issues?

Are there any current or historical disputes with neighbours?

Has the property been the subject of criminal activity?

Are there known building defects or works carried out without required approvals?

Is there anything that may influence a reasonable purchaser’s decision to buy?

Specific prompts achieve two key outcomes.

First, they educate the vendor. Many sellers are unaware of the scope of their disclosure obligations. By walking them through structured questions, you are effectively guiding them through their legal responsibilities.

Second, they protect your agency. A documented, systematic approach significantly reduces the risk of allegations that the agent failed to make proper enquiries.

Taking It a Step Further: Build It Into Your Authority

For stronger protection, agents should consider incorporating a Material Facts Schedule directly into their Authority.

Rather than treating disclosure as an informal discussion, formalise it.

Require the vendor to:

Tick whether each listed material fact applies to the property.

Provide additional detail where relevant.

Sign off acknowledging their disclosure obligations.

This approach creates a clear audit trail. It demonstrates a structured compliance framework. And if a dispute arises post-sale, it provides critical evidence that the agency took reasonable and proactive steps.

Compliance Is Not the Opposite of Performance

Some agents view compliance as administrative burden. The most successful operators understand the opposite is true.

Strong process builds trust.

Strong process reduces risk.

Strong process protects commission.

In an environment where regulators and consumers are increasingly focused on transparency, agents who embed structured material fact enquiries into their listing presentation will not only protect themselves — they will position themselves as true professionals.

The best agents do not just sell property.

They manage risk, lead their vendors, and protect their businesses.

And in Victoria, that starts with material facts.